Kona Gold Beverage Inc (KGKG)

[Teslonian]

There is absolutely no reason for a RS in the near future. The stock is not moving because it is fairly valued based on the current sales and multiple. If the company continues to add large deals, or even better can accelerate the pace of the large deals, then we will see price appreciation not only due to the increase in sales but also the multiple will increase as it will be a fast growing company.

That being said, once the company has a solid history of growth and profits, I see a RS adding value in the way of moving from the OTC market to a large exchange.

My ideal situation is ride organic growth to 50M in annual sales, add in a 12X multiple and we will have a market cap of ~600M. As long as management can keep current SS as it is we will have a .55-.60 pps. Execute a 10/1 RS and simultaneously uplist to a major exchange trading in the $5.50-6.00 range. Allowing institutional investors to come on board. Recipe for success.

Not all RS are bad, but they need to be executed correctly and for the right reasons.